GOLD / SILVER
Volatility looks to extend into the new trading week with a number of media reports overnight indicating that gold is a good hedge against higher rates and ballooning sovereign debt, bitcoin is “better”. However, the bitcoin trade has massive trading volatility and is still in its evolution stage, at-the-same time that China might crackdown significantly on crypto currencies.
PLATINUM / PALLADIUM
While the palladium market lost its bullish dominance early last month, the corrective slide was justified given a softening of global economic psychology. However, the markets were presented with Chinese import and export data for May, but the data was offsetting. We suspect that palladium has balanced its technical condition and removed a large amount of weak handed longs with the May high to low washout of $260. The platinum market severely damaged its charts at the end of last week and despite-the-fact that the market from the May high has already seen a correction of $136, the net spec and fund long position remains burdensome to prices.
While the weaker than expected US nonfarm payroll reading provides a cushion to copper prices, the main event is likely to be Chinese import/export data for May. Unfortunately for the bull camp Chinese unwrought copper imports declined on a month over month basis and may reportedly the result of record high pricing. From the supply-side of the equation, production continues at a BHP facility in Chile (the world’s largest deposit of copper) despite the strike, with an initial proposal for labor offered at the end of last week.
Risk Warning: Investments in Equities, Contracts for Difference (CFDs) in any instrument, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value. Investors should therefore be aware that they may not realise the initial amount invested and may incur additional liabilities. These investments may be subject to above average financial risk of loss. Investors should consider their financial circumstances, investment experience and if it is appropriate to invest. If necessary, seek independent financial advice.
ADM Investor Services International Limited, registered in England No. 2547805, is authorised and regulated by the Financial Conduct Authority [FRN 148474] and is a member of the London Stock Exchange. Registered office: 3rd Floor, The Minster Building, 21 Mincing Lane, London EC3R 7AG.
A subsidiary of Archer Daniels Midland Company.
© 2021 ADM Investor Services International Limited.
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM. The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.